Consumer prices continue to go down in Romania on cheaper food and fuel

Romania’s consumer price index went down by 0.5% in August compared to July, thus registering the third consecutive monthly decline. Prices went down by almost 0.8% for food and by 0.54% for non-food items, while service prices were almost unchanged compared to the previous month. Fruit and vegetable prices went down by more than 5% in August compared to July while eggs got more expensive by almost 4%. Among the non-food items, fuel prices went down by almost 3% and drug prices also declined by 0.5%, according to data released by the National Statistics Institute (INS). The yearly inflation rate in August was -1.9%, mainly because the food prices were 7.15% lower in August 2015 compared to August 2014 following the VAT rate cut on food from 24% to 9% starting June 1, 2015. Romania’s annual inflation rate stays negative in July Negative inflation rate in Romania after VAT cut on food Romania’s central bank expects negative inflation in the next three quarters editor@romania-insider.com